Fundamentals of Business Administration and Management

1. What is the relationship between bond rating and marketing?

Bond rating can be defined as the rating of a companies and is used as a financial indicator to investors who will invest in companies bonds, in other words they assess the credit worthiness of a company. Marketing can be defined as an organisations’ function that entails communicating information about products and services to customers in order to create value for these products and services and therefore satisfy the needs of stakeholders.

Bond rating as defined above is a form of assessing the credit worthiness of an organisation and it is used by potential investors in making their investment decisions, this is related to marketing because both bond rating and marketing are aimed at the needs of stake holders or investors.

1. What is the relationship between stock price and marketing?

Stocks are a term used to signify the capital raised through the sale of shares, therefore the stock price refers to the price of one share. These shares are held by share holders who may wish to sell the shares or buy more of these shares. Share holders will gain if the price of one share for a particular company they hold goes up, this is because they can sell at a much higher price than the cost of acquiring the shares.

Business Administration and Management

Stock prices and marketing are related in that the price of stocks determines the level of demand for these shares, when marketers want to raise the level of capital in a company that is sourced through the sale of shares then they will offer the shares at a lower price than the initial offer, this will attract investors who will predict a rise in the price of these shares in future.

1. What’s wrong about the following statement made by the new CEO (the former CFO)? We have not been playing games. “I was personally criticized by some investors for not playing games—for not giving an estimate and then exceeding it by one penny, which so many companies were doing”